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Enough is enough (TVM evaluation project)

Publication date: 10 Apr 02 | Source: THE TAX INSTITUTE

'This significant involvement in the TVM project over this period of time has enabled the Taxation Institute to carefully review the current draft legislation TVM Prototype 4 released 6th March 2002. As a result the Taxation Institute has reluctantly formed the considered opinion that TVM does not contribute positively to the improvement and reform of Australia's tax regime. The Institute believes that the Board of Taxation should advise the Treasurer to bring a halt to any further work' said Taxation Institute President Barry Low.

'The Taxation Institute believes that TVM does not guarantee certain or quantifiable benefits which justify the disruption to current tax and business practices in the face of certain and substantial increases in costs, particularly for small and medium sized Australian business' said Institute President Barry Low.

'The guidelines available at present refer to only 'potential impact' in all examples – nothing is tried or guaranteed. The Taxation Institute maintains its support for reform; but cannot support a system that would potentially have National and International ramifications, resulting in loss of compatibility with overseas trading partners and increasing risk of tax manipulation' he continued.

Barry Low advised that 'The Taxation Institute remains committed to participating in the reform process. It is crucial the problems identified in the TVM evaluation project are acted upon and some strategic short and long term solutions are implemented to ensure that future reform processes can be effectively addressed. in particular, urgent rectification of remaining 'black holes' identified and the acceleration of the TOFA regime is required now, not in 2005'.